In the news release, Callidus Capital Finalizes Securitization
Facility, issued 01-Dec-2016 by
Callidus Capital Corporation, please note that an error occurred at
the beginning of the second paragraph which should read " The
C$167 million (US$125 million) facility..." not "The
C$167 million (US$167 million) facility...". Corrected copy
follows:
Callidus Capital Finalizes Securitization Facility
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Dec. 1, 2016 /CNW/ - Callidus Capital Corporation
(TSX:CBL) ("Callidus" or the "Corporation") is pleased to announce
that it has closed the previously announced securitization
facility.
The C$167 million (US$125 million) facility has four investment
grade debt tranches ranging from AAA (sf) to BBB (sf), which
represents approximately 60% of the initial issue size. The
securitization facility will augment Callidus' current financing
facilities. Over time, as the securitization program expands,
Callidus will review and optimize the size of its other facilities
to achieve the most suitable capital structure to support the
doubling of its loan portfolio over the next two to three
years.
"We expect the securitization facility to represent an
increasing proportion of Callidus' future capital structure and
that it will be utilized as our primary senior growth-financing
vehicle going forward. The facility will support a lower,
sustainable cost of capital, allow us to optimize leverage, and
therefore, increase the return generated for shareholders," said
Newton Glassman, Executive Chairman
and CEO of Callidus.
Rates under the new facility represent an approximate 2%
reduction in Callidus' cost of funds, compared with the rates
Callidus is paying under the current financing
facilities.
The proceeds from the new securitization facility will be used
to partially repay outstanding amounts under the existing
facilities. This will create incremental liquidity for
Callidus - allowing the Corporation to lever the current loan
portfolio by approximately an incremental $27 million.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities of the Company in
any jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Callidus Capital Corporation
Established in 2003, Callidus Capital Corporation is a Canadian
company that specializes in innovative and creative financing
solutions for companies that are unable to obtain adequate
financing from conventional lending institutions. Unlike
conventional lending institutions who demand a long list of
covenants and make credit decisions based on cash flow and
projections, Callidus credit facilities have few, if any, covenants
and are based on the value of a borrower's assets, its enterprise
value and borrowing needs. Callidus employs a proprietary system of
monitoring collateral and exercising control over the cash inflow
and outflows of each borrower, enabling Callidus to very
effectively manage any risk of loss. Further information is
available on our website, www.calliduscapital.ca.
SOURCE Callidus Capital Corporation